Kuma Capital Investor's Junto

  Home Equity Boom Looming Kuma Capital Investments – September 10th, 2025 Re: Housing Cycles, Baby Boomers, and the Refinance Opportunity Setting the Stage Exactly four years ago, mortgage rates spiked to their highest levels in two decades, freezing the U.S. housing market. Homeowners locked into 3% mortgages stayed put. Transaction volumes plunged. Refinances—the profit engine of mortgage lenders—collapsed. Today, we believe the pendulum is poised to swing back. Rates have eased from their highs near 8% to the mid-6% range. History shows that even a modest decline of 30–50 basis points can double the pool of refinance-eligible borrowers . In August alone, cash-out refinances rose 31% year-over-year , while overall refi locks increased 27% . The cycle, long muted, is beginning to stir. The Demographics Behind the Market The generational context is equally important. Baby boomers now represent 42% of home buyers and 53% of sellers , with many buying outright in cash thank...